Event Description

All businesses, either directly or indirectly, depend upon natural capital, derived from natural resources. It provides the many inputs and services that underpin human societies and economies. At the same time, current economic activities are eroding natural capital: the use of fossil fuels is driving climate change; the growing demand for certain products such as palm oil is a key driver of deforestation and biodiversity loss. In addition, population growth and the need to feed growing numbers of people put intense pressure on both terrestrial and marine ecosystems. These are trends that are likely to worsen in the future if a state of business-as-usual continues.

Addressing the challenge, the UN explained why business managers should consider the effects of their decisions not only on finance, but also on social systems and natural capital. And a number of businesses stated publicly their aim to have a ‘net positive’ impact on various elements of natural capital. However, if the concept of net positive impact is simple at a high level – to do more good than harm – it is highly complex to apply in practice, and to measure.(for more see ACCA’s Global Forum for Sustainability report. )

The growing interest in the concept of natural capital is already driving a wide range of initiatives aimed at developing tools and frameworks accounting for and reporting on natural capital, as illustrated in ACCA recent paper. But we need to do more.

It is time to have a bold discussion to concretely address challenges and define the next steps to further embed natural capital and social considerations in business decision making. The Social and Natural Capital imperatives are being seen increasingly as potentially material issues that businesses of all types and investors should manage, and as such be quantified and appear in financial reports.This edition of ACCA President’s debate will aim to foster effective engagement among policymakers, investors, landowners, landmanagers, businesses, natural capital specialists and accountancy professionals.

Transparency, consistency and comparability in the social and environmental information accompanying company financial statements are increasingly seen as important in terms of strengthening the trust of investors and stakeholders in those companies.

The global financial crisis and, in part, fiscal profligacy have contributed significantly to a sharp rise in government debt levels in Europe. Therefore, tackling excessive public deficits and debts has once again become a priority.

Europe is in its fifth year of crisis with no signs of any improvement. Rising and persistent unemployment across Europe in the wake of the banking and sovereign debt crises have been further aggravated by the choice of a therapy based on austerity.

The ECMI Annual Conference is a major event in Brussels that brings together policy-makers, academics and international experts to discuss challenges for European capital markets integration policies and global financial reforms.